Canada is at the cusp of a trade turnaround as it actively looks to make new trade deals and diversify its trade partners beyond the United States. The government has allocated a $115 billion investment over the next five years in major infrastructure projects related to transportation, energy development, and housing. The last time the government allocated a heavy budget for infrastructure development was in 2010 and 2007.
Taking a leaf from history, you can reshape your portfolio to take advantage of the infrastructure growth cycle that could be triggered by government plans.
Source: Getty Images
TSX stocks to benefit from government infrastructure plans
In the last three years, technology stocks have gone through a major growth cycle of boom and bust. Oil and gas stocks witnessed a growth cycle as geopolitical tensions revived investment in oil projects. The next growth cycle will come from infrastructure.
Transportation and energy infrastructure
TC Energy (TSX: TRP) and Enbridge (TSX: ENB) would be some of the key beneficiaries of energy and transportation infrastructure development. They have been building natural gas pipelines and gas storage units to export liquified natural gas (LNG). While most of their pipelines are directed to U.S. cities, the next leg of growth could see new pipelines connecting to the Canadian shores for export to Europe and Asia via ships.
We analyzed the share price appreciation between 2011 and 2014, when the previous infrastructure development was at its peak. Enbridge’s share price surged more than 110%, while that of TC Energy surged 53%. That was the era of oil pipelines connecting to the US.
After 2014, Enbridge and TC Energy stocks showed strong growth of 62% and 81%, respectively, from October 2023 to date. This growth is being driven by LNG. As many coal-fired plants are converting to gas-fired, Canada is exporting LNG to Europe and Asia, and artificial intelligence (AI) data centres’ energy needs are driving LNG demand. October 2023 was the beginning of the LNG rally, as Canadian natural gas started to be exported from the U.S. Gulf Coast. In June 2025, Canada exported LNG from Canada’s first LNG export facility, LNG Canada.
Expansion of the LNG Canada terminal is one of the major projects the government has allocated funding for in Budget 2025. There is more upside for the two pipeline operators as the export terminal expands and more gas pipelines come online. This time, TC Energy’s share price is likely to rise more as it has spun off its oil pipeline business to focus on gas pipelines. Meanwhile, Enbridge has acquired three U.S. gas utilities to become North America’s largest gas utility company.
Construction companies
Bird Construction (TSX: BDT) and Aecon Group (TSX: ARE) will witness a growth cycle from the government’s infrastructure push. They have already seen a spike in orders in the fourth quarter of 2025. Both are working on the Darlington New Nuclear Project in Ontario, another major project that has secured government funding.
Bird Construction expects to see momentum across mining, transportation, utilities, ports, and marine. All this has raised Bird Construction and Aecon Group’s share prices by 50% and 63%, respectively, in the last 12 months. New order wins could drive up their share price over the next three to five years. However, there could be some dips as project execution could face several hurdles. The best way to make the most of these shares is to buy the dip, accumulate more shares, and sell them in three to four years.
Investor takeaway
Now is a good time to invest in stocks that will benefit from the government’s infrastructure push, as they have not yet surged. Remember, infrastructure projects are long term. Despite the acceleration efforts, the growth cycle could take three to five years to materialize. But when the momentum picks up, the above stocks could double your money within a year or two.
